In recognition of the strong underlying fundamentals driving its business, Datapro has reaffirmed an “A” rating on NOVA Merchant Bank’s N10 billion seven-year subordinated unsecured bond issued under its N50 billion debt issuance programme.
The bond has a fixed coupon rate of 12% per annum.
This achievement follows the recent publication of the bank’s financial results for FY2020 in which it declared a profit after tax of N3.49bn in 2020 compared to N1.65bn in 2019. The bank also achieved a 130% increase in gross earnings while its cost to income ratio declined from 55% in 2019 to 44% in 2020.
The bank’s MD/CEO Nath Ude said concerning the ratings, “The revalidation of an ‘A’ rating builds on the Bank’s recent strong financial performance and further validates our go to market approach, business model and value proposition to our customers. It rewards the Bank for the resilience it has shown during the challenging economic environment arising from the COVID-19 pandemic.”
Chairman of NOVA Merchant Bank Phillips Oduoza further noted, “This rating recognises the progress the Bank has made in such a short period of time amidst a challenging macroeconomic context. The Board remains committed to supporting the management team towards the achievement of many more successful milestones as the Bank’s growth trajectory continues to demonstrate long term sustainability.”